Authorities seize and destroy shipment of over 3,200 bottles of Andre sparkling wine, claiming mislabeling it as “champagne” violates EU law.

As far as Europe is concerned, California “champagne” is toast.

It’s a lesson for those of us not sophisticated enough to distinguish champagne from Champagne. Under EU law, the use of the word Champagne on wine labels is meant exclusively for wines produced in the Champagne region of France. This follows the strict regulations of the region’s Appellation of Controlled Origin (AOC) which ensure that consumers are not misled by falsely labeled bottles.

And this is the reason behind the recent seizure and destruction by Belgian Customs authorities of a shipment of over 3,200 bottles of Gallo’s André sparkling wine at the port of Anvers, Belgium. The bottles contained references to “California Champagne” and “André Champagne Cellars” – a direct violation of export laws in numerous EU and non-EU countries that protect the place names of wine regions. It is the latest in a series of seizures in the last four years, representing critical quantities of bottles, according to an announcement by the Office of Champagne, USA.

Based on the above-mentioned laws, any U.S. product that misuses the Champagne name and seeks to enter an export market that protects consumers from misleading labels is considered counterfeit. To avoid greater legal liabilities and legal procedures, the owner of the merchandise must agree to abandon it for immediate destruction.

California-based E&J Gallo Winery said in a statement that it respects European Union labeling laws and does not sell wine labeled as California Champagne in those countries. Apparently, the shipment in question belonged to a third party in the US and was bound for Nigeria. The shipment owners, once apprised of the problem, agreed to destroy the bottles.

In a press conference in Brussels, leaders of CIVC, the regulatory body of the Champagne appellation, highlighted the importance of protecting the Champagne name around the world and the serious legal and economic implications for those who violate EU and international laws.

According to Bruno Paillard, Champagne producer and representative of the CIVC, "Since the passage and implementation of more rigorous legislation, customs agents and border patrols throughout Europe have seized and destroyed thousands of bottles in the last four years illegally bearing the Champagne name, including products from the United States, Argentina, Russia, Armenia, Brazil and Ethiopia.

“It’s not the wine connoisseurs that get tricked because they know the difference, so our priority is to defend the average consumers,” Paillard continued.

CIVC General Director, Jean-Luc Barbier, added, “The Belgian border authorities have shown great competence and impressive effectiveness in stopping numerous shipments of wines seeking to counterfeit the Champagne appellation’s name.” The bottles were seized as part of Belgium’s anti-counterfeit operations in place at the Anvers port.

Protecting place names of origin is a significant IP issue in Europe. The same laws that protect Champagne also protect Parma ham, Danish blue cheese, British ales, German sausages and nine varieties of Portuguese honey. In the US, though, it’s a different story.

According to Office of Champagne, USA Director Sharon J. Castillo, “…While the global wine market moves towards greater protection of products original to a specific region, the U.S. government and some sectors of the American wine industry insist on continuing to mislead consumers…While international wine growing place names such as Napa Valley are increasingly protected in Europe, our government refuses to afford that same legal protection to European products in our country…”

Consumers in the US and across the globe agree that a wine label should accurately reflect the content of the bottle. They also overwhelmingly believe that wines should only be allowed to use a specific geographic location on their labels if they are actually made in that location.   Last May, Napa Valley became the first U.S. region to be granted Geographic Indication status by the European Union. Champagne, along with 12 other wine regions from around the world (including Napa Valley, Sonoma, Paso Robles, Oregon, Walla Walla, Willamette, and Washington State in the US), is an original signatory of the Joint Declaration to Protect Wine Place & Origin.

Truth in advertising has been a long-recognized principle in marketing. As this incident demonstrates, truth in labeling is just as critical in protecting brands, jobs and maybe even entire economies.